Deal Analysis – Colorado Springs House Hack Near Downtown

Property Deal Analysis Overview

This deal highlight shows a house hack opportunity on the MLS.  This property is centrally located, very close to downtown Colorado Springs.  It also already has a kitchenette and second entrance, lending itself to being an easy conversion to a second living space.  Further, it is zoned appropriately at R-4 (meaning multi-family units are authorized) to allow for a 2-family set-up.

This property is available.

Read about the State of the Market for Colorado Springs real estate Q3 2020.

Deal Quadrant: MLS

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Investment Property Details

• Type: 3 bed, 2 bath, ~1,500 square feet
• Location: central Colorado Springs, very close to downtown
• List Price: $315,000
• Why we like it:
  • Location!
  • Zoned R-4, lots of opportunity
  • Already has a built-in kitchenette near the separate entrance- minimal work to get it ready for renters

Agent Property Description Remarks: Remodeled turn of the century home with a fresh and modern look that can be used as a single family home or a duplex, the property is zoned R4 which adds great possibilities for an investment and additional income, highly desirable location just a few blocks from the Center of Downtown Colorado Springs, lots of entertainment, restaurants, shopping, parks and much more. The property features an updated kitchen, dining area, 3/4 baths and 2 bedrooms, plus an additional living space with 1 bedroom, 1 full bath, a kitchenette and a separate entrance that would allow for the new owner to use this part of the house as a rental, new roof, upgraded vinyl windows, new flooring, new kitchen, new appliances, upgraded electric panel, gas stoves on main level and lower level.

Spreadsheet Rental Analysis

Property Operating Expenses

First Year Returns

Conclusion

This property is ideal for a House Hack turned Nomad™ opportunity.  With only an assumed 5% down, conventional loan, it would be considered a breakeven cash flow opportunity.  There would be some upfront costs to partition off the separate living areas and to add to the already existing kitchenette.  Further, we assessed an 8% yearly repair/maintenance budget for this property which is very conservative since the home is recently fully-remodeled. If self-managed, the return would be even greater upon moving out.  Furthermore, the rents budgeted are on the very low end. Considering the proximity to downtown, each unit could easily get $100-150 more a month than budgeted.

YouTube Video: Rental Property Analysis Colorado Springs House Hack Near Downtown